Pacun

Technically the purchasing member is increasing her interest on the partnership but buying "shares" from the other partners. The purchasing member is receiving a partial liquidation or the partnership is distributing the house to her. Is this a related party transaction? If so, no gain will be reported on the purchasing partner but the basis on the property will be the old basis.

Terry D, that's the way I was thinking but since that money was already taxed on the federal level, only the earnings should be taxable. In DC, if I put $3,000 on a 529 plan, I only get a break on the state return, not the federal, so I assume that I will have a basis on the 529 funds.

If solvent, line 21 with a note. If insolvent, form 982.

I think so. The only condition is that the dependent doesn't file a joint return and even if filing jointly with 0 liability to claim a refund, STILL qualifies as a dependent.

I guess there is no much enthusiasm.

You are correct. Thank you.

I guess it is not adjusted income, therefore the $4,100 will be the amount to be considered. Thank you for your help. Yes, I also wonder what it will be next year but I will find out in May, after tax season.

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How about a son with a 1099-misc of $4,100 with 0 expenses, can he be claimed a s dependent if parents supported him 75% and is 45 years old, not incapacitated?

Thank you. It is one standard deduction now that I recall correctly.

How much is the maximum my son can make in order for me to claim him as a dependent if he lived with me the whole year in 2017 and I paid 75% of his support?

If that 1099-c comes from their primary residence, just use form 982 and select primary residency and (I THINK) you have to go to the second part of the form and state that you will reduce your basis but the amount forgiven. No explanation needed when primary residency and the IRS has honored all my requests.

Based on this information, there is no way the client will come out on top. Client can use $241 for an education credit and pay taxes on $14,100. OR client can pay taxes on the scholarship (if allowed) and use $2,100 for education credit. This is the situation, client applied for scholarship and at the same time went to his 529 plan administrator and asked for $14,100 to pay for education. Since the scholarship covered almost everything, they have a taxable transaction.

Substantial presence is needed when you are deciding to file 1040NR or 1040. In your case, you must file 1040 and the rules for EIC are: Your child live with you more than 6 months in the tax year and that both have a social security number without a label that reads "Not authorized to work" and that that number was assigned before the due date of the return.

I would give a choice to my clients: Please pay me $200 to amend and you will get a refund of ten bucks. If they don't want to pay me, I will explain the consequences of such action. Of course the consequences will be that they will save $190. I always keep materiality in mind when no adverse consequences.

If you can argue that his detention was a temporary absence... Head of house hold for her this year with the one child she supported more than 50%. If not single with one dependent. Father Single with the other dependent. Both get EIC and if they are not married, no problem. If not a temporary absence, then file her as HH with the two children and he will be single with no dependents. Next year, if they don't marry, they can swap the kids as they see it fit, just keep in mind that HH requires the extra questions. You don't say if the mother has a social security number but I will assume she does.

Sorry, after reading it, I realize that there is no 1098. Was the auditor from the IRS? Just kidding!!!

I normally give the deduction to the person whose social security is listed on the 1098. I do believe it should be split.

Yes it is on the forms. Also the mortgage insurance is ready. Remember to amend if you need any of those credits (even if refiling before April 15)

Are we talking about splitting the advanced credit from the exchange? I have not seen any indication of that on the post until WITAXLADY refers to something that smells like repaying the credit. If I and my wife file a joint a return and my daughter files her own return AND my employer has covered every one, all I have to do is to check the box on each return and that's all. I agree with Cathy that checking the box for the child means "I had health insurance all year" and it only matters when I have to reconcile the advance credit.

"Liberty Credit"?

I guess the IRS doesn't want to be hard on us and allow us to make mistakes on birthdates. I had a dependent who according to the client was 16 by the end of the tax year but the IRS didn't give the child tax credit to the client. We checked the birth certificate and the IRS was correct. The IRS knows the correct date but it will only give you hard time when you are taking a credit that you are not entitled to based on age. How about when we enter W-2 and forget to check "spouse" on top? Or how about when we enter a schedule C for a cash spouse (without 1099misc) and we forget to check "spouse". Do we really want to criticize the IRS when we have our own faults? Of course some of you never make mistakes, right?

I would have done a gift return in the case of the daughter getting almost free rent.

Now I can see I was correct. I have always said that my cousin is my friend when it comes to tax law.

I guess I was wrong. Now another question, I have a house that I rented for 27.5 to a good family that took good care of it and now my house has been depreciated (let's say) almost completely. The area where the house is has become the place where every body wants to live and rent is really expensive. Let's say rent is $10K per month and my cousin rents it from me for 9K which is under FMV. So I just pocket those $118K from rent since it is personal use?